Corporate market

ABSTRACT

A method of implementing a controlled market includes providing guidelines, to traders, regarding a reward associated with first entity-controlled securities that are associated with a selected project from at least one of a plurality of an entity&#39;s projects and a further associated with an event related to the selected project, providing the first entity-controlled securities to each trader, allowing each trader to trade the first entity-controlled securities and at least second entity-controlled securities, acquiring, from the traders, at least some of the first entity-controlled securities, and issuing the reward to each trader from whom the first entity-controlled security is acquired if the related event is realized, where at least one of the providing the first entity-controlled securities, the allowing each trader to trade, and the issuing the reward is dependent upon a trader, to whom a first entity-controlled security is provided, from whom a first entity-controlled security is acquired, or to whom the reward is issued, taking a trader action.

CROSS-REFERENCE TO RELATED ACTIONS

[0001] This application claims the benefit of U.S. ProvisionalApplication No. 60/282,525 filed Apr. 9, 2001.

FIELD OF THE INVENTION

[0002] The invention relates to a corporate economy and moreparticularly to using a corporate economy for allocating resources,making acquisition and investment decisions, generating businessintelligence, motivating targeted behaviors and valuing assets.

BACKGROUND OF THE INVENTION

[0003] To date, executive management of corporations relies oncentralized decision making, with staff reward systems only distantlyrelated to individual performance. Information is channeled throughdefined reporting chains from the periphery to the centralized unit ofmanagement and resource allocation flows in the reverse direction, againthrough defined, hierarchical paths. This method may, however, lead to,e.g., slow response times, inappropriate action, internal politicalstruggles and other problems synonymous with bureaucracy. Bureaucraticmethods of corporate organization have a long historical precedent,rooted in military organization.

SUMMARY OF THE INVENTION

[0004] The invention brings advantages of market forces to corporateenvironments as an alternative or adjunct to bureaucratic structures.The invention creates competitive forces between alternative internalinterests, in contrast with existing business structures, which attemptto minimize internal competition. Using the invention, markets areestablished in place of bureaucratic processes allowing market forces toplay out the priorities otherwise set by central management. In themarket, securities based on in-house assets or events are traded usingin-house money. A reward system is provided that is a collection ofmarket-related mechanisms by which participants accumulate and redeemrewards. The invention is preferably implemented at least partially on acomputer network.

[0005] The invention provides for a controlled market economy to becreated, where professional staff are given the opportunity to invest insecurities corresponding to outcomes of events related to the company'sassets, staff, resources, processes, development or other projects,planning scenarios, or other internal metrics, referred to herein asprojects. The resulting patterns of investment are an expression of theknowledge of the professional staff on these projects or events.Analysis of the market data therefore yields insight into the collectiveknowledge of the organization with minimal, or at least reduced,distortions. The invention can be configured so that the currency usedfor investment carries actual budgetary allocation power, or so thatownership of investments carry special rights, responsibilities andprivileges. These rights allow defined amounts of decision making powerto be delegated to the market from the central management body. Accessto the market and its reward structures is modulated by the measured andtracked behaviors of individuals in the community of participants.

[0006] In general, in an aspect, the invention provides a method ofimplementing a controlled market. The method includes providingguidelines, to traders, regarding a reward associated with firstentity-controlled securities that are associated with a selected projectfrom at least one of a plurality of an entity's projects and a furtherassociated with an event related to the selected project, providing thefirst entity-controlled securities to each trader, allowing each traderto trade the first entity-controlled securities and at least secondentity-controlled securities, acquiring, from the traders, at least someof the first entity-controlled securities, and issuing the reward toeach trader from whom the first entity-controlled security is acquiredif the related event is realized, where at least one of the providingthe first entity-controlled securities, the allowing each trader totrade, and the issuing the reward is dependent upon a trader, to whom afirst entity-controlled security is provided, from whom a firstentity-controlled security is acquired, or to whom the reward is issued,taking a trader action.

[0007] Implementations of the invention may include one or more of thefollowing features. The method further includes pursuing a project basedon trading of the entity-controlled securities by the traders. Thepursuing is based on at least one of amounts of the entity-controlledsecurities traded by the traders for the selected project and relatedevent, patterns of acquisition of the entity-controlled securities, andprices of the entity-controlled securities. The pursuing comprises atleast one of funding or working on the selected project.

[0008] Implementations of the invention may also include one or more ofthe following features. The allowing the traders to trade the firstentity-controlled securities includes initially allowing the traders totrade, and ongoing allowing of the traders to trade, while a project isin progress. The method further includes pursuing a project based atleast in part on ongoing trading of the first entity-controlledsecurities by the traders. The ongoing acquiring includes trading ofdifferent entity-controlled securities.

[0009] Implementations of the invention may also include one or more ofthe following features. The trader action is at least one of respondingto a survey and trading the first entity-controlled security. Thetraders have knowledge relevant to a likelihood of at least one eventassociated with at least one project being realized. The method furtherincludes making available knowledge relevant to the projects accessibleto the traders before the acquiring. The knowledge is made available bythe traders.

[0010] Implementations of the invention may also include one or more ofthe following features. The traders acquire the entity-controlledsecurities by trading items of value for the entity-controlledsecurities. The method further includes distributing varying amounts ofthe items of value to the traders. The varying amounts of the items ofvalues are dependent upon at least one of each trader's likely impactupon the realization of the event, knowledge of the likelihood ofrealization of the event, and taking of the trader action by the trader.The items of value are entity-controlled currency. Possession of theentity-controlled currency carries at least one right associated withthe entity. The at least one right is to obtain resource allocation fora project. The method further includes providing the entity-controlledcurrency periodically. The method further includes lending theentity-controlled currency to at least one of the traders. The methodfurther includes exchanging the items of value for at least one ofproducts, services, and work-related commodities available through anentity store.

[0011] Implementations of the invention may also include one or more ofthe following features. The related event is an end result of theselected project. The at least a portion of the providing, acquiring,and issuing is performed by a software program. At least one of theproviding the first entity-controlled securities, the allowing eachtrader to trade, and the issuing the reward is inhibited unless thetrader takes the trader action. Possession of at least one of the firstentity-controlled securities carries at least one right associated withthe entity. The right is at least one of a right to share in profitderived from, and a right to obtain payment for use of, a resourceassociated with the at least one entity controlled security.

[0012] In general, in another aspect, the invention provides a method ofobtaining objective feedback for projects of a company from relevantpersons. The method includes providing company-regulated currency torelevant persons, providing guidelines to the relevant persons forrewards for investing in company-regulated securities associated in eachof a plurality of company projects, the rewards being based onrealization of a specified event associated with each project, investingby the relevant persons in at least one of the company projects bytrading the company-regulated currency for shares of project interest,obtaining information from the relevant persons regarding trades made bythe relevant persons, and issuing the reward corresponding to each ofthe company-regulated securities whose associated event is realized toeach trader that holds the company-regulated security upon evenrealization and that has provided information regarding at least onetrade of the company-regulated security.

[0013] Implementations of the invention may include one or more of thefollowing features. At least one event is a milestone of acompany-internal project. The reward is a salary bonus. The investing bythe relevant persons is performed over a computer network regulated bythe company. The method further includes providing computer accounts ofthe company-regulated currency for the relevant persons. The methodfurther includes using software to log and analyze data associated withthe investing, the data including information about the relevant personsthat are investing and about investing activity. The relevant personsinclude employees of the company.

[0014] In general, in another aspect, the invention provides a computerprogram product for implementing an entity-controlled market, thecomputer program product residing on a computer-readable medium andincluding computer-executable instructions for causing a computer toprovide guidelines, to traders, regarding a reward associated with firstentity-controlled securities that are associated with a selected projectfrom at least one of a plurality of an entity's projects and a furtherassociated with an event related to the selected project, provide thefirst entity-controlled securities to each trader, allow each trader totrade the first entity-controlled securities and at least secondentity-controlled securities, acquire, from the traders, at least someof the first entity-controlled securities, and issue the reward to eachtrader from whom the first entity-controlled security is acquired if therelated event is realized, where the instructions are configured to atleast one of provide the first entity-controlled securities, allow eachtrader to trade, and issue the reward depending upon a trader, to whom afirst entity-controlled security is provided, from whom a firstentity-controlled security is acquired, or to whom the reward is issued,taking a trader action.

[0015] Implementations of the invention may include one or more of thefollowing features. The trader action is at least one of responding to asurvey and trading the first entity-controlled security. The computerprogram product further includes instructions for causing the computerto make knowledge relevant to all the projects accessible to all thetraders before the computer acquires the first entity-controlledsecurities. The computer program product farther includes instructionsfor causing the computer to distribute varying amounts of the items ofvalue to the traders for obtaining the first entity-controlledsecurities. The varying amounts of the items of values are dependentupon at least one of each trader's likely impact upon the realization ofthe event, knowledge of the likelihood of realization of the event, andtaking of the trader action by the trader. The related event is an endresult of the selected project.

[0016] Various aspects of the invention may provide one or more of thefollowing advantages. Efficiency of corporate operations andeffectiveness of corporate action (e.g., in producing products) can beimproved. Accounting transparency and agility of corporate response toexternal events can be improved, and management effort can be reduced.Collective knowledge of controlled-market participants can be evaluatedand relied upon in making decisions, e.g., that influence companyprojects. Individual knowledge, including candid knowledge, of marketparticipants can be extracted. Controlled-market participation,including obtaining shares/money to use in trading, trading itself, andredeeming security shares for rewards can be made conditional on traderbehavior from which additional information can be obtained.

[0017] These and other advantages of the invention, along with theinvention itself, will be more fully understood after a review of thefollowing figures, detailed description, and claims.

BRIEF DESCRIPTION OF THE FIGURES

[0018]FIG. 1 is a schematic block diagram of a controlled-market system.

[0019]FIG. 2 is a schematic block diagram of a functional marketplaceshown in FIG. 1 becoming an operational marketplace as shown in FIG. 1.

[0020]FIG. 3 is a schematic block diagram of the functional marketplaceshown in FIGS. 1-2.

DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS

[0021] The invention provides techniques for producing and operating acompany-controlled marketplace. The marketplace is regulated by anentity, e.g., a company, including establishing guidelines, definingsecurities, encouraging trader behaviors, monitoring trader behaviorsand security “prices,” providing rewards, and making decisions regardingprojects of the entity based upon market activities, including security“prices,” trader behaviors, and information obtained from traders (e.g.,in response to inquiries into trading activity).

[0022] Implementation

[0023] The invention can be implemented in two parts: (a) theconstruction of computer-based software and hardware components, and (b)the engineering of several business processes instituted, e.g., byexecutive directives.

[0024] Computer Hardware and Software

[0025] Referring to FIG. 1, a system 10 includes a computer or server20, a network 22, external agents 24, user devices 26, traffic registers40, and access controllers 42. The user devices 26 can be computerterminals, keyboards, voice command receivers and the like that presentinterfaces for users of the user devices 26. The devices 26 can be usedto remotely access the computer 20 through the network 22. The network22 connects the computer 20 and the user devices 26 to the externalagents 24 that comprise databases and computers or servers. The trafficregisters 40 can monitor and record activity by the user devices 26.Access to the user devices 26 is regulated by the access controllers 42under direction from the computer 20.

[0026] The computer 20 includes several portions including softwaremodules, and a database, for implementing various fimctions. As shown,the computer includes an operational marketplace module 12, a functionalmarketplace 28, a marketplace execution module 30, an accounting module32, a database 34, a business rules module 39, an access control module36, and a data analysis module 38. The accounting software 32 canexecute account and accounting functions and contribute to producing thefunctional marketplace 28. The database 34 is configured to storerelevant data. The business rules module 39 is configured to encodebusiness rules that manipulate the data stored in the database 34. Theaccess control module 36 is configured to actuate the access controller42 to regulate access to the computer 20 by the user devices 26. Thesoftware modules are configured as computer-executable instructionsstored on computer-readable memory for implementing their respectivefunctions, as described in more detail below. The software and databasecomponents may be installed by any usual method employed by thoseskilled in the art of information technology.

[0027] The marketplace execution software 30 is configured to executemarketplace (e. g., trading) functions and so contribute to the creationof the functional marketplace 28. This software 30 may be, e.g.,software produced by ePIT®, Inc., located at 351 California Street, SanFrancisco, Calif., 94104. The market making algorithm could be any kindused in electronic or traditional markets, and such algorithms arefamiliar to those skilled in the art.

[0028] The database 34, for example, can store data about the userdevices 26, and about information seeking and other behavior of users ofthose devices 26. The data stored in the database 34 may be collected,for example, by the network traffic registers 40. Data from the trafficregisters 40 include information regarding the market access behaviorsof the users. The database 34 can also store information generated bythe operational market 12. The database 34 may also be linked to otherdatabases (not shown). Data regarding the users are transmitted by theuser devices 26 directly to the database 34. These data include, e.g.,demographics of the users.

[0029] Executive Directives Preferably executives, their agents, orother individuals who are preferably not participants in the market,design the market. The market design may be performed only once, at thebeginning of operations, but preferably, the market design is a dynamicprocess that is on-going during market operation.

[0030] Referring also to FIG. 2, the functional marketplace 28 becomesthe operational marketplace 12 by loading the functional marketplace 28with securities 16 and money 14 according to a process 43 including thestages shown. The process 43, however, is exemplary only and notlimiting. The process 43 can be altered, e.g., by having stages added,removed, or rearranged. The operational marketplace 12 is a controlledmarket as described below, with the market being configured andregulated by an entity desiring to obtain information/knowledgeregarding one or more projects of the entity.

[0031] At stage 52, marketplace production is initiated by designers,here executives of a company. The designers design the marketplace usingconsulting practices familiar to those skilled in the art, e.g.,meetings and solicitations for ideas (e.g., through email) forinformation gathering, and the construction of process diagrams,organizational charts and the like for understanding relationships.Through the design process, the designers produce a ‘game’ wherealternative interests, as expressed by individual participants, compete.Stage 52 includes stages of defining one or more objectives anddelegating power 44, defining a community 46, defining behavioraltargets 48, and defining a reward structure 50.

[0032] Definition of Objective and Delegation of Power At stage 44, theexecutives define one or more objectives, such as any commonlyunderstood business goal (e.g. based on a process, asset or project).Exemplary business goals include, but are not limited to, theachievement of a project development milestone, the collection ofintelligence regarding sales forecasts, or the acquisition of atechnology. Preferably, a precisely defined and measurable eventrelevant to the objective (e.g. a product development milestone) isselected at stage 54 as an object of investment. An event external tothe corporate environment could be, or also be, selected. Regardless ofsource, the event selected at stage 54 becomes the basis of theinvestment prospectus for the financial security defined at stage 58, asdescribed, e.g., by the Iowa Elections Market or Hollywood StockExchange. The accounting software 32 produces a brokerage function 56and either distributes shares of the securities 16 directly into traderaccounts 60, or offers them for sale in the market 12. When the eventoccurs as stipulated, the securities payout a predefined amount of moneyto holders of shares of those securities.

[0033] In-house money 62 is also created by the accounting software 32in the brokerage function 56 and distributed into the trading accounts60 of participants. The money is a means of exchange in the corporateeconomy and is used, for example, by traders to trade securities in themarketplace 12.

[0034] Also at stage 44, executives define the level of decision makingpower delegated to market forces by rights that are associated with thesecurities and/or the money. For example, in embodiments where theobjective is one of intelligence gathering only, then preferably theonly rights that are associated with the security are ones governingpayout of the shares upon event outcome. In embodiments where theobjective is one of acquisition, then budgetary allocations arepreferably associated with the money 62.

[0035] Executives establish formulae and rules by which (preferablyperiodic) endowments of shares and/or money 62 are made into the tradingaccounts 60 of traders, or offered in the marketplace. In someembodiments, these formulae may be triggered solely on a time schedule,but in other embodiments, the endowment formulae may be triggered oraltered by the behaviors of participants as described below.

[0036] Definition of Community

[0037] At stage 46, the executives define the community of participants64 from among the users 26. The community is defined by several criteriarelated to the level of involvement that each person has with thedefined event or its related process, asset or project. This includeseach person's work duties, knowledge and decision making power.

[0038] The participants 64 defined in the market 12 can be of severalclassifications. Preferably, the participants 64 include traders who aregiven direct access to the trading functions in the market 12 by theaccess control software 36. The participants 64 can also include lendersor other individuals who provide various services for other users, suchas management of investment portfolios.

[0039] Lenders may also receive accounts of the money 62, e.g., whenexecutives issue money during market design or adjustment. Unliketraders who have direct access to the market, lenders use their money 62to lend to traders or to other parties. This lending of the money 62 issubject to lending rules and interest rates set by executive directiveas part of market design defined at stage 52.

[0040] Definition of Reward Structure

[0041] The traders may also use the money to buy real rewards 82 at acompany store 80, which is also enabled by the marketplace software 30.These real rewards 82 are supplied by the company executives and couldtake any form perceived by the participants 64 as having value. Theamount and periodicity of money that can be exchanged for the realrewards 82 by any given trader is controlled by rules and exchange ratesembodied in formulae 66 and triggered by individual, measured behaviorstargeted during the market design defined at stage 52. For example, theamount of the money 62 able to be exchanged for the rewards 82 may be afunction of trading activity in the marketplace 12, where ‘trading’ is atargeted behavior.

[0042] The rewards 82 may be offered at a set “price” of the corporatemoney 62, or may have a competitive or luck element to their purchase.For example, a limited number of the rewards 82 may be auctioned to thehighest bidders from among the traders. A lottery format may also beused to allocate a reward, where the money 62 is used to buy tickets.

[0043] Definition of Behavioral Targets

[0044] Individual staff behaviors targeted by executives as desirableare nominated, and appropriate tracking metrics are established at stage48. Reward formulae are established for each behavior and are embodiedin the access control software 36 and the business rules software 39such that the dynamics of participation in the market are altered whenthe trader engages in the behavior. The measurements of these behaviorstrigger the formulae 66. The formulae 66 may comprise, for example,increases in the size or frequency of endowments of shares or money 62to trader accounts, the amount of the money 62 able to be redeemed atthe company store 80 or changes to trading limits. It is preferable totrack the behaviors at the individual level, so that traders arerewarded directly for their personal behaviors.

[0045] The behaviors can include acts directly associated with themarket 12 or independent of it. An example of an associated behavior isthe completion of a questionnaire/survey during the trading orderprocess in the market 12. The survey may inquire into the reasons for atrade (either buying or selling shares/securities) and the trader may begiven more (less) shares or money 62 for responding (not responding),with the amount of shares or money 62 preferably being independent ofthe substance of the response. Another behavior is trading; the payoutto a trader holding correct shares could be limited, e.g., to marketmoney that cannot be used to buy rewards 82 at the store 80 if theshares are never traded. An example of an independent behavior isproviding expert advice on some topic to whomever requests it, in amanner where the provision of that advice is recorded.

[0046] The configuration of tracked behaviors changing the dynamics ofparticipation can also be made in the negative, so that undesirablebehaviors trigger reductions in the rewards 82 to individual traders.That is, the money 62 or shares can be removed or market rights changedor revoked when users are detected as engaging in other activities,targeted by the executive as undesirable behavior. These triggers arepart of the policing function of operations.

[0047] The rewards 82 for behaviors may also be triggered after thefact, when a second, related event occurs. For example, submittingdocumented work into an archive may be a targeted behavior whose rewardis triggered (to the author) when a third party accesses the document.These indirect triggers may result in the rewards 82 being awardedmultiple times to the same individual for a single act (e.g. ofdocumentation).

[0048] Activation and Regulation

[0049] Access to the economy is a software control point, enabled bypasswords distributed to traders and other participants 64. Passwordsare preferably earned by the participants 64 through targeted behaviorssuch as the completion of a training and certification program.Certifications and the password access they allow may be changed orrevoked for individual participants 64. Reasons for this may include theparticipant 64 leaving the corporate environment, changing his or herjob responsibility into a non-participating category (such as to theexecutive layer) or being caught, by a policing function, breaking therules.

[0050] The economy has several points of regulation, including theamount of money 62 endowed to the participants 64, the amount of themoney 62 able to be redeemed for the rewards 82, interest rates, andother parameters familiar to persons skilled in the arts of economicsand/or banking.

[0051] It is preferable for the economy to have legislative andjudiciary functions, to adjust the rules and the formulae 66 and toresolve ambiguities (for example in the securities definitions) asappropriate. The composition of these bodies and their procedures arelikely to vary with each company in which the economy is installed, dueto reasons of corporate culture. In any case, the implementation can bemade using consulting practices familiar to those skilled in the art ofgovernance.

[0052] Description of Operation

[0053] An operational market 12 can be constructed as outlined above.The activities of the market 12 are enabled by the marketplace executionsoftware 30 and the accounting software 32.

[0054] Exchange Events

[0055] Referring also to FIGS. 1-2, the basic exchanges that occur inthe market 12 are outlined in FIG. 3. The securities 16 are preferablyoffered by the executive in the market 12 for the first time 100, andare purchased by traders using the money 14. Preferably, traders mayexchange the securities 16 among themselves in secondary trading 102.The securities 16 may pay out money periodically to traders holding thesecurities 16, as per rights associated with the securities 16, andtriggered by events relating to the event/asset/project underlying thesecurity definition. When an end-point event occurs that is stipulatedin the security definition, each security pays out 104 a defined amountof money to the holder of the security 16. This is achieved by theexecutive ‘buying back’ the security 16 from holders for the definedamount, and removing the security 16 from the market 12.

[0056] The brokerage function of the market may also allowshort-selling, long-trading and other forms of trading services familiarto those skilled in the art of financial services.

[0057] In some embodiments, the holding of shares by a trader(preferably in the majority of those outstanding) is accompanied by theright to issue new securities, for example, based on a subdivision ofthe objective underlying the original security. In this way, the holderof those shares acts somewhat like a brokerage.

[0058] In embodiments where the money 14 is accompanied by rights toaccess budgetary line items for expenditure external to the corporateeconomy, a corporate exchange bank preferably exists. The money 14 canbe exchanged for legal tender at this bank, subject to rules andexchange rates set by the executive during market design.

[0059] Influences on Trading Activity

[0060] During the time that a security 16 is open, its price in themarket 12 will change in response to demand from traders. This demandwill fluctuate depending on several influences. These include, forexample, information newly acquired by traders either directly orindirectly relevant to the event associated with the security 16. Thisnew information may be pre-existing, newly created or found, andinternally or externally generated. Competitive forces are also createdbetween the securities 16, in embodiments where the same class of moneymay be used to buy multiple securities. This also influencesfluctuations in demand for the securities 16.

[0061] Data

[0062] These, and other, influences result in fluctuations in tradingactivity including price movements of the securities 16. These are amongthe data that are deposited in the database 34. The database 34 canstore:

[0063] Information related to the event/asset/project underlying thesecurity definition.

[0064] Information relating to the tracking of behaviors.

[0065] Traffic data from the registers of network traffic, includingidentity of users, search requests for data, website or databasedestinations visited and frequency of visits.

[0066] Market generated data including trading activity and pricemovements and account data.

[0067] Information gathered during the trading process, includingcitations to evidence supporting the trading decision and surveysrelated or unrelated to the security being traded.

[0068] Trader details such as relationship with project/asset, field ofexpertise, position in company or other demographic details.

[0069] To Extract Intelligence

[0070] The data in the database 34 are analyzed with the data analysissoftware 38. This yields information of several types. It yieldsinformation able to inform adjustment of the market design, triggeringof reward formulae, adjustment of software features and executive-levelbusiness intelligence.

[0071] Examples of business intelligence, include:

[0072] The opinions on future project events, such as timing, size oryes/no (e.g., whether to start or continue funding a project).

[0073] ROI (Return on Investment) assessments of projects,

[0074] Forecasts for the outcomes defined in the security definition.

[0075] The opinions on whether a past project event has changed theforecast for a future event.

[0076] Identification and usage of knowledge resources, includingdatabases, people, information sources and company reports.

[0077] Importance, accuracy and relevance of knowledge resources.

[0078] Quality monitor for company documentation.

[0079] Monitoring of staff behavior.

[0080] To Drive Behaviors

[0081] Behaviors can be reinforced with internal markets, as describedabove. Preferably, the behaviors are tracked automatically, with thereward formulae 66 embodied in the market 12 and the accounting software32. Ratios and parameters of the reward formulae 66 are preferably underthe control of the executive or the executive's administrative agents,so that the behavioral drivers can be managed on an on-going basis.

[0082] Detail on Components

[0083] Market

[0084] The market 12 for the securities 16 provides a collection offunctions and events that allow the active exchange of the money 14 fora specific kind of financial security. Multiple securities 16 may beoffered simultaneously in separate markets 12. A marketplace may be awebsite (or other electronic destination) where trading of thesecurities 16 can occur.

[0085] Participants

[0086] Users may include everyone who accesses the market 12 or the datait generates. Users may include analysts, police, market regulators andmarket participants. The market participants 64 may be further dividedinto traders, lenders and other service providers. Exemplary tradersinclude any, preferably non-executive, person (e.g., staff member,contractor, project-related agent), whether a company employee or not,whose expertise and/or knowledge and/or opinions derived therefrom areuseful and/or needed to inform executive decision making, such asforecasts for success or ROI assessments for projects in development,but who can individually insignificantly affect project outcomes.Specific examples include scientific staff, lawyers, marketingprofessionals, sales force, manufacturing or processing staff. Thispreferably does not include executives such as CEO or Chairman or othersthat can significantly affect outcomes of corporate events underlyingthe security definitions. Lenders may be specially certifiedparticipants or may be corporate institutions or departments created byexecutive mandate, such as the corporate bank. A single individual usermay have a combination of classifications, for example as both a traderand a lender.

[0087] Preferably, a participant 64 is an individual person. Theparticipants 64 may, however, include groups of individuals or a companydivision. Other non-participating users have roles as observers,analysts and police.

[0088] Access of potential participants 64 to the market 12 may berestricted based on prospective trader actions. For example, the tradersmay be required to provide information regarding why they are trading inorder to be allowed to trade.

[0089] Securities

[0090] The securities 16 are created as definitions of outcomes (e.g.,occurrences or non-occurrences of events) that trigger rewards.Preferably, these definitions map closely to the manner in which thecompany creates value for its stakeholders. The events may occur onlyonce or multiple times. For example, a security 16 can be created arounda development project achieving a milestone, which occurs only once, oraround usage of a technology resource, which occurs multiple times.

[0091] A security can be framed, e.g., as:

[0092] 1. An outcome from several possibilities. In this case, thedefinition may resemble “If outcome 1, then reward for securitiesforecasting outcome 1=A and reward for securities forecasting outcome‘not 1’=B” and “If outcome 2, then reward for securities forecastingoutcome 2=C and reward for securities forecasting outcome ‘not 2’=D”where A>B and C>D in some measure of worth or perceived worth.

[0093] 2. The timing of a single outcome. In this case, the definitionwould resemble “If outcome occurs by date 1, then reward for securitiesforecasting date 1=A, and reward for securities forecasting date ‘after1’=B” and “If outcome occurs after date 1, then reward for securitiesforecasting date 1=C and reward for securities forecasting date ‘after1’=D” where A>B and C<D.

[0094] 3. The quantity associated with an event. In this case, thedefinition would resemble “If an event happens of ‘size X or greater’,by date Y, then reward for securities forecasting ‘size X or greater’=A,and reward for securities forecasting of ‘less than size X’=B, etc.

[0095] The securities 16 could be, e.g., in the form of:

[0096] 1. A futures contract.

[0097] 2. A security upside or ownership stake in the specific project(e.g., product or service). This resembles the common definition of‘equity.’

[0098] 3. A derivative security based on ownership or upside stakes inthe project.

[0099] 4. A collection of securities (i.e. a ‘mutual fund’).

[0100] 5. A convertible security.

[0101] 6. A bond.

[0102] 7. A bond fund.

[0103] 8. A ‘bet’ as commonly understood.

[0104] 9. Any financial vehicle familiar to those skilled in the art.

[0105] The securities definitions into which the professional staffinvests could derive, e.g., from:

[0106] 1. Intellectual Property (IP) or other legally recognized asset.

[0107] 2. Collections of securities.

[0108] 3. In-house or joint-venture projects.

[0109] 4. Alliances, partnerships and other corporate relationships.

[0110] 5. Projects, companies or IP offered for acquisition.

[0111] 6. Corporate events, such as the achievement of sales figures ormanufacturing milestones.

[0112] 7. A defined objective and associated tasks.

[0113] 8. Usage of a resource, e.g. a machine or device.

[0114] 9. Actions by a specific person or group of people.

[0115] 10. A decision by an external agent (e.g. government agency)

[0116] 11. An internal corporate metric.

[0117] 12. An external corporate metric.

[0118] 13. The corporate stock price.

[0119] Preferably, securities are initially offered by the executive totraders in the market 12. Securities may also be allocated directly totraders who offer them in the market 12.

[0120] Preferably, there will be no reward (reward=nothing) for thesecurities 16 that do not forecast (are not associated with) whatactually happens. Partial rewards may be paid for forecasts that arepartially realized. Some reward may be paid out for inaccurateforecasts, e.g., to encourage participation.

[0121] Security Rights

[0122] In at least one embodiment, the holder of a security 16 retainsno rights over the project, event or asset underlying the securitydefinition, other than the rights associated with payout upon eventoutcome. In some embodiments, the holder of a share will retain selectedrights associated with the project, event or asset. For example, forsecurities based on the usage of a specific resource, holders receiveincome paid by the users of the resource. The actual amount of incomereceived is preferably a function of how many shares are held by theholder in comparison with the total number issued. In furtherembodiments, holders of shares of a security 16 receive rights to createand offer new securities 16 for investment.

[0123] Money

[0124] The money 14 in the market 12 may be in-house means of exchangeand not necessarily legal tender used in the macroeconomy. The in-housemoney 14 is created by executive directive. It may either be solely forin-house exchange (e.g. resembling Monopoly money), or may carry actualresource allocating power such that, e.g., the amount of money 14obtained in exchange for securities determines the amount of actuallegal tender provided for obtaining resources (e.g., products and/orservices for a project). The money 14 is assigned directly to traders.The money 14 may also be able to be purchased by traders and/or lenderswith legal tender or services provided to the company.

[0125] Preferably, there is only one kind of money and it may be used inany and all of the markets 12 to buy any or all of the securities 16.Various kinds of money, however, can be created that are specific intheir use to buy specific securities 16.

[0126] Marketplace and Banking Functions

[0127] Preferably, the marketplace is able to perform many, if not all,of the functions that marketplaces in the macroeconomy are able toperform, and that are familiar to those skilled in the art. Theseinclude, but are not restricted to:

[0128] a. Accepting bids for securities by traders.

[0129] b. Accepting asks for securities by traders.

[0130] c. Performing clearing, matching or settlement of bids and asks.

[0131] d. Brokerage.

[0132] i. Storage and Accounting of Securities.

[0133] ii. Issuance of new securities.

[0134] iii. Administration of rewards paid out by securities.

[0135] iv. Policing of rules.

[0136] Banking functions may be allowed upon executive directive. Theseinclude but are not restricted to:

[0137] 1. Money issuance to traders and/or lenders.

[0138] 2. Current accounts. The participants 64 may deposit theircurrency 14 into an account that may or may not bear interest.Securities purchases and sales are settled with the money 14 from orinto the current account.

[0139] 3. Redemption of the money 14.

[0140] 4. Loans. Traders and/or lenders may borrow the money 14. Loansmay bear interest rates, and may be subject to collateral or marginrules.

[0141] 5. Policing of rules.

[0142] Behavioral Targets

[0143] The rewards 82 may be triggered to individuals by:

[0144] a. Holding shares of a security 16 upon event outcome. In thiscase, the reward 82 is in the security payout.

[0145] b. Holding shares of a security 16 when an intermediate eventoccurs associated with the underlying event, project, resource or asset.In this case, the reward 82 is in the form of a dividend.

[0146] c. Engaging in high volume trading activity. The rewards 82 mayinclude the right to redeem some money at the company store 80.

[0147] d. Being an author on a citation or reference nominated by athird party as part of the trading order process. The rewards 82 mayinclude shares in the security 16 traded by the third party.

[0148] e. The completion of surveys, questionnaires or tasks associatedwith the trading order process. The rewards 82 may include shares of thesecurity 16 being offered for trade by the trader.

[0149] f. Quality or quantity of input or comments made as part of thetrading order process.

[0150] g. Sharing of ideas, suggestions or knowledge in any trackableform.

[0151] h. Cooperating with or providing services to other parties.

[0152] i. Engaging in training or learning behavior.

[0153] j. Breaking rules (this is a reward-inhibiting trigger).

[0154] k. Any behavior nominated during market design and trackedthereafter.

[0155] Rewards

[0156] The reward 82 triggered by any process could be, e.g., of form:

[0157] 1. In-house currency.

[0158] 2. Legal tender.

[0159] 3. Stock options in the company.

[0160] 4. Other tradable assets (e.g. company shares or bonds).

[0161] 5. Shares in securities offered in the in-house markets.

[0162] 6. Other, non-liquid assets understood to be liquefiable, (e.g.stock options able to be exercised at a specified, future date orevent.)

[0163] 7. Work-related benefits such as working first shift vs. secondshift, or vacation days.

[0164] 8. Project assignments such as transfer to active participationon project X, and/or release from active duty on project Y.

[0165] 9. Other benefits or non-tangible items provided by the company,understood to have value to a trader, e.g., professional staff member.

[0166] 10. A change in rights associated with the market 12 (e.g.increased trading limits).

[0167] 11. A change in rights associated with the money 14 or a security16 (e.g., dividend rights).

[0168] Redemption

[0169] The in-house money 14 is able to be redeemed for the real rewards82, such as items 2-7 listed in ‘Rewards’ above. The amounts andfrequencies of redemption by any one trader are controlled by a formulaeunder executive directive, for example, to be a function of eachtrader's trading activity, or to be a function of the amount of themoney 14 held in account, or a function of time, or the like. Theformulae may also be linked to tracked behaviors.

[0170] The company preferably holds an amount of legal tender or otherresources in reserve so as to allow for swift redemption when called.

[0171] Trading Rules

[0172] Trading rules help to prevent market manipulation and so ensure afair, healthy and efficient market that generates undistortedinformation. An example of such a rule is “No insider trading until newinsider knowledge is widely available.” Thus, in this example, projectinsiders must disclose information prior to trading the securities 16based on that project. The actual rules established for a market will bestrongly influenced by, e.g., company practices, organization, andinformational needs, etc., in accordance with teachings of finance andgovernance. Another rule could be that traders must fill out anyappropriate surveys, or otherwise provide information (e.g., regardingwhy they are trading), in order to trade.

[0173] Applications

[0174] The invention can be applied, e.g., to:

[0175] 1. Forecasting.

[0176] 2. Resource Allocations, e.g., funding or otherwise pursuingprojects both new and existing.

[0177] 3. Vendor Selection (e.g., subsequent to buy decisions).

[0178] 4. Technology Acquisition.

[0179] 5. Acquisitions of companies.

[0180] 6. Decision making regarding asset management.

[0181] 7. Delegation of business objectives to staff.

[0182] 8. Cultural change strategies through motivation of targetedbehaviors (e.g. team formation).

[0183] 9. Asset development through motivation of targeted behaviors(e.g. knowledge sharing).

[0184] Examples

[0185] 1. Use of the market 12 to forecast of an event related totechnical success (as measured by some milestone). Suitably qualifiedprofessionals are certified as traders, with the rewards 82 principallyassociated with sound investments, and triggered by actual eventoutcomes.

[0186] 2. Use of the market 12 to motivate knowledge sharing ordocumentation among the professional staff. Trading involves thecitation of evidence. The rewards 82 are associated with authorship (orother relationship with evidence) and are triggered by citation.

[0187] 3. Use of the market 12 to decide on a resource acquisition. Thesecurities 16 are framed upon usage of the resource (after acquisition),with each share accompanied by rights for the holder to receive incomeupon usage. For example, if intellectual property (IP) or a photocopieris acquired, the holder of a security bought as an indication that theIP or copier, respectively, should be purchased would have rights toshare in payments, e.g., company-controlled royalty payments if the IPis licensed or copier is used, respectively. The money 14 is associatedwith real budgetary allocating power and the right to spend the legaltender externally. Thus, a project leader that obtains money 14, inexchange for selling securities 16 that are ownership shares of EPproposed to be purchased, can purchase the IP if the money obtained isassociated with sufficient legal tender for purchasing the IP.

[0188] 4. Use of the market 12 to allocate resources to projects. Thesecurities 16 are based on project milestones and are issued to a smallgroup of selected traders who are the champions of the project. Thesecurities 16 are offered for sale (a few at a time) to a second groupof traders who are issued money with real budgetary allocating power.

[0189] 5. Use of the market 12 to promote innovation. The securities 16are based on people, or groups of people, taking action accepted asbeing part of an innovation cycle (e.g. the writing of a business plan).

[0190] 6. Use of the market 12 to delegate an objective. The securities16 are framed on achieving the objective and carry a defined rewardbased on successfully achieving the objective. Shares (preferably allshares) are grouped and sold at auction to a qualified group of bidders.The holding of shares is accompanied by the right to issue newsecurities based on a limited number of sub-divisions of the objectiveand its reward 82. The final securities 16, representing the smallestsub-divisions of the objective, are treated as work contracts, which areput out to tender among the professional staff. The professionals whodeliver services specified by the work contracts then become holders ofthe securities 16, and receive its sub-divided reward when the objectiveis successfully achieved.

[0191] Exemplary Industry Types that may benefit from the Invention

[0192] Industries and companies can benefit from the invention where,e.g.,:

[0193] (a) the business model is significantly based on producing anon-going stream of innovative products and/or projects, i.e. a productpipeline.

[0194] (b) the time, technical difficulty or expense of the productdevelopment chain is such that the cost of failure is high.

[0195] (c) the forecasting of success and ROI assessments havesignificant input from professional staff with special or particularknowledge or expertise relating to the projects or products indevelopment.

[0196] (d) The size of the company is large and/ or its operationscomplex.

[0197] Examples of such industries include pharmaceuticals (e.g.therapeutic drugs), aerospace, industrial instruments (e.g. measuringprobes), automotive and computer hardware (e.g. mobile computingplatforms).

[0198] Other embodiments are within the scope and spirit of the appendedclaims. For example, due to the nature of software, functions describedabove can be implemented using software, hardware, firmware, hardwiring,or combinations of any of these. Features implementing fimctions mayalso be physically located at various positions, including beingdistributed such that portions of functions are implemented at differentphysical locations.

What is claimed is:
 1. A method of implementing a controlled market, themethod comprising: providing guidelines, to traders, regarding a rewardassociated with first entity-controlled securities that are associatedwith a selected project from at least one of a plurality of an entity'sprojects and a further associated with an event related to the selectedproject; providing the first entity-controlled securities to eachtrader; allowing each trader to trade the first entity-controlledsecurities and at least second entity-controlled securities; acquiring,from the traders, at least some of the first entity-controlledsecurities; and issuing the reward to each trader from whom the firstentity-controlled security is acquired if the related event is realized;wherein at least one of the providing the first entity-controlledsecurities, the allowing each trader to trade, and the issuing thereward is dependent upon a trader, to whom a first entity-controlledsecurity is provided, from whom a first entity-controlled security isacquired, or to whom the reward is issued, taking a trader action. 2.The method of claim 1 further comprising pursuing a project based ontrading of the entity-controlled securities by the traders.
 3. Themethod of claim 2 wherein the pursuing is based on at least one ofamounts of the entity-controlled securities traded by the traders forthe selected project and related event, patterns of acquisition of theentity-controlled securities, and prices of the entity-controlledsecurities.
 4. The method of claim 2 wherein the pursuing comprises atleast one of funding or working on the selected project.
 5. The methodof claim 1 wherein the allowing the traders to trade the firstentity-controlled securities includes initially allowing the traders totrade, and ongoing allowing of the traders to trade, while a project isin progress.
 6. The method of claim 5 further comprising pursuing aproject based at least in part on ongoing trading of the firstentity-controlled securities by the traders.
 7. The method of claim 5wherein the ongoing acquiring includes trading of differententity-controlled securities.
 8. The method of claim 1 wherein thetrader action is at least one of responding to a survey and trading thefirst entity-controlled security.
 9. The method of claim 1 wherein thetraders have knowledge relevant to a likelihood of at least one eventassociated with at least one project being realized.
 10. The method ofclaim 9 further comprising making available knowledge relevant to theprojects accessible to the traders before the acquiring.
 11. The methodof claim 10 wherein the knowledge is made available by the traders. 12.The method of claim 1 wherein the traders acquire the entity-controlledsecurities by trading items of value for the entity-controlledsecurities.
 13. The method of claim 12 further comprising distributingvarying amounts of the items of value to the traders.
 14. The method ofclaim 13 wherein the varying amounts of the items of values aredependent upon at least one of each trader's likely impact upon therealization of the event, knowledge of the likelihood of realization ofthe event, and taking of the trader action by the trader.
 15. The methodof claim 12 wherein the items of value are entity-controlled currency.16. The method of claim 15 wherein possession of the entity-controlledcurrency carries at least one right associated with the entity.
 17. Themethod of claim 16 wherein the at least one right is to obtain resourceallocation for a project.
 18. The method of claim 15 further comprisingproviding the entity-controlled currency periodically.
 19. The method ofclaim 15 further comprising lending the entity-controlled currency to atleast one of the traders.
 20. The method of claim 15 further comprisingexchanging the it ems of value for at least one of products, services,and work-related commodities available through an entity store.
 21. Themethod of claim 1 wherein the related event is an end result of theselected project.
 22. The method of claim 1 wherein the at least aportion of the providing, acquiring, and issuing is performed by asoftware program.
 23. The method of claim 1 wherein at least one of theproviding the first entity-controlled securities, the allowing eachtrader to trade, and the issuing the reward is inhibited unless thetrader takes the trader action.
 24. The method of claim 1 whereinpossession of at least one of the first entity-controlled securitiescarries at least one right associated with the entity.
 25. The method ofclaim 24 wherein the right is at least one of a right to share in profitderived from, and a right to obtain payment for use of, a resourceassociated with the at least one entity controlled security.
 26. Amethod of obtaining objective feedback for projects of a company fromrelevant persons, the method comprising: providing company-regulatedcurrency to relevant persons; providing guidelines to the relevantpersons for rewards for investing in company-regulated securitiesassociated in each of a plurality of company projects, the rewards beingbased on realization of a specified event associated with each project;investing by the relevant persons in at least one of the companyprojects by trading the company-regulated currency for shares of projectinterest; obtaining information from the relevant persons regardingtrades made by the relevant persons; and issuing the rewardcorresponding to each of the company-regulated securities whoseassociated event is realized to each trader that holds thecompany-regulated security upon even realization and that has providedinformation regarding at least one trade of the company-regulatedsecurity.
 27. The method of claim 26 wherein at least one event is amilestone of a company-internal project.
 28. The method of claim 26wherein the reward is a salary bonus.
 29. The method of claim 26 whereinthe investing by the relevant persons is performed over a computernetwork regulated by the company.
 30. The method of claim 29 furthercomprising providing computer accounts of the company-regulated currencyfor the relevant persons.
 31. The method of claim 29 further comprisingusing software to log and analyze data associated with the investing,the data including information about the relevant persons that areinvesting and about investing activity.
 32. The method of claim 26wherein the relevant persons include employees of the company.
 33. Acomputer program product for implementing an entity-controlled market,the computer program product residing on a computer-readable medium andcomprising computer-executable instructions for causing a computer to:provide guidelines, to traders, regarding a reward associated with firstentity-controlled securities that are associated with a selected projectfrom at least one of a plurality of an entity's projects and a furtherassociated with an event related to the selected project; provide thefirst entity-controlled securities to each trader; allow each trader totrade the first entity-controlled securities and at least secondentity-controlled securities; acquire, from the traders, at least someof the first entity-controlled securities; and issue the reward to eachtrader from whom the first entity-controlled security is acquired if therelated event is realized; wherein the instructions are configured to atleast one of provide the first entity-controlled securities, allow eachtrader to trade, and issue the reward depending upon a trader, to whom afirst entity-controlled security is provided, from whom a firstentity-controlled security is acquired, or to whom the reward is issued,taking a trader action.
 34. The computer program product of claim 33wherein the trader action is at least one of responding to a survey andtrading the first entity-controlled security.
 35. The computer programproduct of claim 33 further comprising instructions for causing thecomputer to make knowledge relevant to all the projects accessible toall the traders before the computer acquires the first entity-controlledsecurities.
 36. The computer program product of claim 33 furthercomprising instructions for causing the computer to distribute varyingamounts of the items of value to the traders for obtaining the firstentity-controlled securities.
 37. The computer program product of claim36 wherein the varying amounts of the items of values are dependent uponat least one of each trader's likely impact upon the realization of theevent, knowledge of the likelihood of realization of the event, andtaking of the trader action by the trader.
 38. The computer programproduct of claim 33 wherein the related event is an end result of theselected project.